Occupational Pension
Are you currently working in a reputable company or employed in the public sector in Ireland? If yes, did you make any plans for your retirement? If not, now is the time to begin planning for your future so that when you retire, you can enjoy your life without any financial worries.
An occupational pension is a type of pension scheme in which your employer automatically tops up the amount you pay into it each month. This ensures that your income is more stable and less reliant on government benefits (if eligible) when you retire. The final lump sum pension fund you will qualify for depends on how much money you save in the plan and how long you contribute to it. You can also get tax relief on contributions at a marginal rate of 20% to 40% in this pension scheme.
Who Qualifies For This Pension Scheme?
- Must be a resident of Ireland
- Must be classified as a worker and have a signed contract with your employer
- Minimum earning must be € 10,000 per year
- Employees can be a member of any personal pension scheme but cannot contribute to both at the same time concerning the same employment
- Must be above 60 years of age to claim your retirement fund
Secure Your Future With Occupational Pension Plan
Occupational pension plans are an excellent and tax-efficient way for an employed individual to save for retirement.
Occupational pensions are arrangements set up by employers to provide retirement income for employees or their dependents upon the employee’s death. It can be contributory or non-contributory, funded or unfunded, defined benefit, or defined contribution.
The maximum amount you can contribute to a self-employed retirement plan depends on your age and income level. You can obtain full tax relief on earnings up to a set limit which is currently €115,000 per year. Each occupational pension plan has its own set of rules, established by the employer. Although there is no legal obligation for any company to create a pension program for their employees, many companies opt to do so due to government incentives.
For advice on setting up an occupational pension plan, contact our expert financial advisors today!
Benefits Of Occupational Pension Plan
- You can enjoy the retirement benefits of an occupational pension from the age of 60
- You can claim up to 40% tax relief on occupational pension contributions depending on your age
- The minimum total contribution is only 8% of your qualifying earnings.
- You can always choose whether or not to enroll in an occupational workplace pension scheme, but it is best to be enrolled.